A cool view of the internet bubble

Recently a large number of domestic and foreign technology media began to discuss bubbles, the dotcom bust that burst at the start of this century has left the industry still haunted by a frenzy of sanity, almost as long as you have a good idea for a big investment or even a listing, and when a large number of such companies appear to absorb large sums of capital and eventually go bankrupt, That time the dotcom bubble burst.

Before discussing the imminent dotcom bubble, it is necessary to learn more about the technology bubble. With the rapid rise of the internet in the late 90, the emergence of well-known internet companies, including Netscape, Amazon, Yahoo and ebay, has created a fascinating capital miracle and "dot com". COM) "concept. The most important point of the dot com concept is the free and scale effect, where most companies are successful at attracting users with free services and hoping to build a brand effect, meaning that most internet company investors have no way of judging the size of their potential through financial statements, because maybe today it's another Yahoo for losing money tomorrow.

The rapid rise of the Internet concept stocks has made capital feel urgent, it's like a new money-grabbing campaign, where every investor is frantically searching for an investment opportunity in the Internet, and an internet company may be asking several investors at the same time that no one can stay sane and sober to invest in capital madness and excess. , investment behavior at the most extreme time into a looting investment opportunities, we all believe that "success is always a prepared person."

In a few years, investors suddenly discovered that, despite the high stock prices of those internet companies, they were still unable to find a way to profit, and that they could do nothing but continue to absorb capital, recruit workers and buy bigger offices, and the stock price was ultimately based on the company's true performance, The dotcom bubble burst after a growing number of such companies. Yes, the dotcom bubble was the new word that was created, and after a few years of Internet winter, no one thought that the zenith of the Internet concept would be shattered, so after that we had a definition of the dotcom bubble: overvalued valuations, excess capital, and market jitters.

Well, I can see a lot of bubbles in terms of the Chinese Internet, and now it's not uncommon to raise billions of dollars and still have new records to refresh. Internet companies that have been listed this year are rumored to have reached dozens of, and the already-listed Chinese concept stocks have been largely sought after by capital, although their profitability is not exactly matched by stock prices. Many investors are also openly saying they are actively looking for investment opportunities in a wide range of areas such as mobile Internet, E-commerce, group buying and so on, and they want to make their earliest seed investments, and it may be too late to join in a few years.

Having seen this, we have to admit that there are some bubbles in the Chinese Internet, and that these bubbles are entirely likely to turn into a full-scale rout at some point in the future, but this time there is a clear difference. First of all, we have experienced an internet bubble, so investors and entrepreneurs are more cautious when faced with opportunities; second, bubbles are always accompanied by a new round of revolution, no one can deny that the first internet bubble created a large number of internet giants, so bubbles on the entire industry is not a bad thing The last bubble is an excellent opportunity for truly interested entrepreneurs, you can take the bubble period of money in the winter to save flowers, and then at a lower cost to recruit better people to develop together, and then wait for this round of cold winter is your spring arrived, today's internet giant Google is in the internet during the winter of rapid growth.

Source: XJP submission, original link.